The Ledyard Water Pollution Control Authority needs to increase utility rates by as much 13.6 percent to help close a projected $104,842 operating deficit, Chairman James Diaz said recently.

Elaborating on a 38-page presentation made to the Town Council on Wednesday, Diaz said the increases, if enacted, would keep Ledyard “well within state averages” for water and sewer fees, but he said he understands how unpleasant they’ll be for the authority’s 1,500 customers.

“It’s difficult to do this,” said Diaz, a former town councilor. “These are hard times. It’s a bad economy.”

Water rates would have to increase by between 13.1 percent and 13.6 percent, he said. For a single-family home using up to 10,000 gallons, the quarterly bill would increase to $75 from $66. The quarterly bill for an apartment dwelling using up to 3,333 gallons would rise to $25 from $22. Commercial buildings, schools and churches using up to 10,000 gallons will see quarterly bills climb to $100 from $88.

Sewer rates would need to be increased 8 percent, Diaz said.

Town Council Chairman Linda Davis said the increases are justified, calling them “long overdue,” although she understands people’s desire not to pay more.

“Our water rates are very competitive,” she said Friday. “Nobody likes it when utility costs go up.”

The rate hikes would add between $10,000 to $12,000 to school water and sewer costs budgeted for 2013-14 at $100,000, Superintendent of Schools Michael Graner said. Water and sewer expenses are part of the school system’s operations budget, which totals $2.5 million.

“It’s not peanuts, but it’s not going to kill us,” Graner said Friday. “We have make adjustments to our budget every year. Some items go up, and some go down.”

Diaz said he is aiming for the increases to take effect with the start of the new fiscal year on July 1. He said he’s willing to delay the increases a few weeks in order to fully inform the public. A pamphlet will be created and a “full package” of information will be placed on the authority’s website prior to public hearings, Diaz said.

No dates have been set yet, but Diaz said he expects hearings to be held in June.

The authority last raised rates in 2009 when a 10 percent increase was authorized by the Town Council after a request for a 30 percent increase.

Getting accurate data about usage was difficult for the past few years, including a time when the Town Council took over the authority’s duties, effectively absorbing the water board, Diaz said.

Thanks to the authority’s re-establishment and a strong relationship with Groton Utilities, which oversees Ledyard’s water assets, the needs of the system are becoming easier to identify, Diaz said.

“We now know the financial situation way better than we did before,” he said.

Page 2 of 2 - Total expenses for 2013-14 are projected at $926,542 with projected operating revenue of $821,700, leaving a deficit of $104,842, Diaz’s presentation states.

“The authority has been fiscally conservative,” he said. “But we cannot run a deficit.”